BALANCE SHEETSJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation Account

AssetsCash and due from banks (Note 3)
Securities (Notes 4 and 19)
Loans (Note 5)
Miscellaneous assets (Note 6)
Premises and equipment (Note 7)
Deferred charges on bonds and notes (Note 8)
Allowance for possible loan losses (Note 9)
Total assets

Liabilities and equity
Liabilities
Bonds and notes (Note 10)
Borrowings (Note 11)
Miscellaneous liabilities (Note 12)
Allowance for bonus payments
Allowance for employee retirement benefits (Note 13)
Total liabilities

\

\

\

Equity (Note 16)
Capital attributable to the Overseas Economic Cooperation AccountReserve attributable to the Overseas Economic Cooperation AccountAccumulate deficit
Total equity
Total liabilities and equity\

In millions of yen

In millions of yen

In millions of U.S.dollars

March 31, 2005

March 31, 2004

March 31, 2005

63,924
119,877
10,740,793
76,6317,002
8(182,511)
10,825,726\\

34,924
120,514
10,578,524
81,8027,297
12(129,557)
10,693,520

$

$

595
1,117
100,017714
65
0(1,700)100,808

In millions of yen

In millions of yen

In millions of U.S.dollars

March 31, 2005

March 31, 2004

March 31, 2005

25,0004,200,459
17,363365
6,565
4,249,752

6,891,244
85,490(400,761)
6,575,973
10,825,726

See accompanying "Notes to Financial Statements" which are an integral part of these statements.

\\

25,0004,365,907
20,347348
6,623
4,418,226

6,704,644
20,667(450,018)
6,275,293
10,693,520

$

$

233
39,114162
3
61
39,57364,171796(3,732)
61,235
100,808

STATEMENTS OF OPERATIONSJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation AccountIncomeInterest income
Interest on loans
Interest and dividend income on securities
Interest on due from banks
Fees and Commissions
Other operating income
Foreign exchange gain
Other ordinary income
Grant from general account (Note 15)
Reversal of allowance for possible loan losses
Recovery of Written-off Claims
Profits on sales of premises and equipment
Total income
Expenses
Interest expenses
Interest on bonds and notes
Interest on borrowings
Fees and Commissions
Other operating expenses
Foreign exchange losses
OthersGeneral and administrative expenses
Other ordinary expenses
Provision for allowance for possible loan losses
Write-off of equities and securities, etc.
Others
Losses on disposal of premises and equipment
Total expense
Net income\

In millions of yen

In millions of yen

In millions of U.S.dollar

FY 2004

FY 2003

FY 2004

253,095
249,456
3,638
0
685
21
21
76
30,000\$90
30,000
7,782
3,051
268
296,8231,077
17284,974
103,954744
103,209
2,143
354
354
8,613
55,82552,9532,867
3
2
170,894
114,079

See accompanying "Notes to Financial Statements" which are an integral part of these statements.

-

968
7
961
20
3
-

-

\

1,924
67
4
135,366
161,457

2,357
2,323
34
0
6
0
0
1
279
10
0
2,653

121,834
744
121,089
2,180
199
197
1
9,156
1,992

-

\

255,000
252,720
2,280
0
630

$

3
80
520
493
27
0
0
1,591
1,062

STATEMENTS OF CASH FLOWSJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation AccountCash flows from operating activities
Net income
Depreciation and amortization
Increase(decrease) in allowance for possible loan losses
Increase in allowance for bonus payments
Decrease in allowance for employee retirement benefits
Interest income
Interest expenses
Net loss on securities
Foreign exchange (gain)loss
Net gain on sales of premises and equipment
Net increase in loans
Net decrease in borrowings
Net decrease in due from banks (excluding cash equivalents)
Interest received
Interest paid
Others, net
Net cash used in operating activities
Cash flows from investing activities
Purchases of securities
Sales of securities
Expenditures on premises and equipment
Proceeds from sales of premises and equipment
Net cash (used in)provided by investing activities
Cash flows from financing activities
Proceeds from issuance of capital from Government
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period\\

See accompanying "Notes to Financial Statements" which are an integral part of these statements.

In millions of yen

In millions of yen

In millions of U.S.dollars

FY 2004

FY 2003

FY 2004

114,079 \413
52,95316(58)(253,095)
103,954
2,867
(32)
(14)
(162,268)(165,448)(18,298)
258,304(104,780)(2,771)(174,177)

161,457 $436(51,454)62(251)(255,000)
121,834
1,992
194
(264)
(152,942)(245,810)(645)
316,308(122,287)
223(226,146)(2,416)693(70)
65(1,727)

(262)
635
(319)
333
386

(22)
6
(1)
1
(16)

186,600
186,600
0
10,69433,412
44,106200,300
200,300(0)(25,460)
58,87333,412

1,738
1,738
0
100
311
411

\

$

1,062
4
493
0
(1)
(2,357)
968
27
(0)
(0)
(1,511)(1,541)
(170)
2,405
(975)
(26)
(1,622)

STATEMENTS OF EQUITYJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation AccountIn millions of yen

Balance at March 31, 2004

Capitalattributable to
the Overseas
Economic
Cooperation
Account

Reserve
attributable to
the Overseas
Economic
Cooperation
Account

Accumulated
deficit

Total Equity

\

\

\

\

6,704,644

20,667(450,018)

6,275,293

Transfer from net
earnings accounted
under the JBIC Law toreserve-

64,823(64,823)-

Issuance of capital from
Government

186,600--

186,600--

114,079

114,079

Net income
Balance at March 31, 2005\

6,891,244\

85,490\(400,761)\

6,575,973

Appropriations:
Transfer from net
earnings accounted
under the JBIC Law toreserve-

25,833(25,833)

-

Total

\

-

\

25,833\(25,833)\-

UnappropriatedAccumulated deficit

\

-

\

-

\

(426,595)\-

See accompanying "Notes to Financial Statements" which are an integral part of these statements.

STATEMENTS OF EQUITYJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation AccountIn millions of dollars

Balance at March 31, 2004

Capitalattributeable to
the Overseas
Economic
Cooperation
Account$
62,433

Reserve
attributable to
the Overseas
Economic
Cooperation
Account$
192

Accumulated
deficit$(4,190)Total Equity$
58,435

-

604

(604)

-

1,738

-

-

1,738

-

-

1,062

1,062

Transfer from net earnings
accounted under the JBIC
Law to reserve
Issuance of capital from
Government
Net income
Balance at March 31, 2005$

64,171$796$(3,732)$

61,235

Appropriations:
Transfer from net earnings
accounted under the JBIC
Law to reserve

Total
UnappropriatedAccumulated deficit

-

241

(241)

-

$

-

$

241

$

(241)

$

-

$

-

$

-

$

(3,973)$-

See accompanying "Notes to Financial Statements" which are an integral part of these statements.

STATEMENTS OF EQUITYJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation AccountIn millions of yen

Balance at March 31, 2003

Capitalattributable to
the Overseas
Economic
Cooperation
Account

Reserve
attributable to
the Overseas
Economic
Cooperation
Account

Accumulated
deficit

Total Equity

\

\

\

\

6,504,344

280,719(871,526)

5,913,536

Transfer from reserve to
net earnings accounted
under JBIC Law-(260,051)

260,051-

Issuance of capital from
Government

200,300--

200,300--

161,457

161,457

Net income
Balance at March 31, 2004\

6,704,644\

20,667\(450,018)\

6,275,293

Appropriations:
Transfer from net
earnings accounted
under the JBIC Law toreserve-

64,823(64,823)

-

Total

\

-

\

64,823\(64,823)\-

UnappropriatedAccumulated deficit

\

-

\

-

\

(514,841)\-

See accompanying "Notes to Financial Statements" which are an integral part of these statements.

NOTES TO FINANCIAL STATEMENTS
JAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation Account

1. Basis of presentation
The accompanying financial statements have been prepared from the accounts maintained by Japan Bank forInternational Cooperation ("JBIC") in accordance with the provisions set forth in conformity with accounting principles
and practices generally accepted in Japan, which are different in certain respects as to application and disclosure
requirements from International Financial Reporting Standards.
The financial statements are not intended to present the financial position, results of operations and cash flows inaccordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan.
The Bank’s accounts are separated into the International Financial Account and the Overseas Economic Cooperation
Account as required under Article 41 of the Japan Bank for International Cooperation Law ("JBIC Law") whereby theaccounting shall be separated according to the categories of international financial operations and overseas economic
cooperation operations and be recorded by establishing a separate account for each operation. In separating the accounts,transactions directly related to either of the operations are attributed to the account for these operations and overhead
expenses and others are allocated to both of the accounts in accordance with certain pre-defined allocation rate.
Consolidated financial statements are not prepared since JBIC has no subsidiaries.
The amounts indicated in millions of yen are rounded down by omitting figures less than one million. Totals may
therefore not add up exactly because of such omission.
Amounts in U.S. dollars are presented solely for the convenience of readers outside Japan. The rate of ¥107.39=$1.00,
the exchange rate as of March 31, 2005, has been used in translation. The presentation of such amounts is not intended to
imply that Japanese yen have been or could be readily converted, realized or settled into U.S. dollars at that rate or any
other rate.

2. Significant accounting policies(a)Cash and cash equivalents"Cash and cash equivalents" as stated in the statements of cash flows consists of cash in hand and due from Bank ofJapan included in "Cash and due from banks" in the balance sheets.
(b)

Securities
All securities are classified as "Available-for-sale Securities" which have no market value and are carried at cost basedon a moving average cost valuation.
(c)

Foreign currency translation and revaluation method
JBIC maintains its accounting record in Japanese yen. Assets and liabilities denominated in foreign currencies aretranslated into Japanese yen at the market exchange rate prevailing at the fiscal year end.
(d)Depreciation basis for fixed assets(i) Premises and equipment
Premises and equipment are depreciated on the declining balance basis over their useful economic lives except
for buildings (excluding installed facilities) acquired on or after April 1, 1998, which are depreciated on astraight-line basis.
The principal estimated useful economic lives are as follows:
Buildings: 38 years to 50 years
Equipment: 2 years to 20 years(ii) Software
Software used by JBIC is amortized on a straight-line basis over its useful economic life (5 years).

(e)

Accounting standard for impairment of fixed assets
On August 9, 2002, the Business Accounting Council in Japan issued the "Accounting Standard for Impairment of
Fixed Assets." The standard requires that fixed assets be reviewed for impairment whenever events or changes incircumstances indicate that the carrying amount of an asset may not be fully recoverable. An impairment loss shall berecognized in the statements of operations by reducing the carrying amount of impaired assets or a group of assets to therecoverable amount to be measured as the higher of net selling price and value in use.
The standard shall be effective for fiscal years beginning April 1, 2005. However, an earlier adoption is permitted forfiscal year beginning April 1, 2004 and for fiscal years ending between March 31, 2004 and March 30, 2005.
JBIC has not yet applied this new standard nor has determined the effect of applying it on the financial statements.
(f)
Method of amortization for deferred charges"Discounts on Bonds and Notes" are amortized over terms of redemption, and "Bonds and Notes Issuance Costs" areamortized over 3 years, on the straight-line basis in accordance with the Commercial Code of Japan.

(g)Change in presentation on balance sheets. In the previous years, equity interests in limited liability partnerships (LLPs), and those in voluntary partnership
under the Civil Code and silent partnership under the Commercial Code characteristics of which are similar to those of
LLPs had been included in “Miscellaneous assets”. However, from this fiscal year, these are included in “Other securities”
of “Securities” as they are defined as securities under the Securities and Exchange Law by the “Partial Revision of
Securities and Exchange Law” (Law No.97 dated June 9, 2004).
(h)Allowance for possible loan losses
JBIC provides "Allowance for possible loan losses" as follows:
The allowance for claims on debtors who are legally bankrupt ("Bankrupt borrowers") or substantially bankrupt("Substantially bankrupt borrowers") is provided based on the outstanding balance after the write-offs described in Note 5(h) and the deductions of the amount expected to be collected through the disposal of collateral and execution ofguarantees.
The allowance for claims on debtors who are not legally bankrupt but are likely to become bankrupt ("Potentiallybankrupt borrowers") is provided based on an assessment of the overall solvency of the debtors after deducting theamount expected to be collected through the disposal of collateral or the execution of guarantees.
The allowance for claims on debtors other than Bankrupt borrowers, Substantially bankrupt borrowers and Potentiallybankrupt borrowers is provided primarily based on the default rate, which is calculated based on the actual defaults
during a certain period in the past.
The allowance for possible losses on specific overseas loans is provided based on the expected loss amount taking into
consideration the political and economic situations of these countries.
All claims are assessed initially by the operational departments and secondly by risk evaluation departments based oninternal rules for self-assessment of asset quality. The internal audit department, which is independent from theoperational departments, reviews these self-assessments, and the allowance is provided based on the results of theassessment.
(i)Allowance for bonus payments"Allowance for bonus payments" is calculated and provided for based on estimated amounts of future payments
attributable to the services that have been rendered by employees to the date of the balance sheet. Allowance for bonus
payments to executive directors is included in the account.
(j)

Allowance for employee retirement benefits
Allowance for employee retirement benefits represents the future payment for pension and retirement benefits toemployees and executive directors, and is accrued based on the projected benefit obligations and the estimated pension
plan assets at fiscal year end.
The actuarial gain or loss is recognized in the year in which it arises.

(k)

Lease transactions
Finance leases that do not involve the transfer of ownership to the lessee at the end of the lease term are accounted for
as operating lease.
(l)Consumption taxes
Consumption taxes, including local consumption tax, are excluded from the transaction amounts.

3. Cash and cash equivalents
The reconciliation between the balance of cash and cash equivalents at the end of each fiscal year and the amount ofcash and due from banks reported in the balance sheets as of March 31, 2005, and 2004 is as follows:
March 31, 2005
（In millionsof yen）¥
Cash and due from banks
Due from banks (*)
Cash and cash equivalents(*) Excluding Due from Bank of Japan¥

March 31, 2004
（In millionsof yen）¥

63,924(19,817)
44,106¥

March 31, 2005
(In millions of
U. S. dollars)$

34,924(1,511)
33,412

$

595
(184)
411

4. Securities
Securities as of March 31, 2005 and 2004 are as follows:
March 31, 2005
（In millionsof yen）

March 31, 2004
（In millionsof yen）¥
EquityOther securities¥¥
118,687
1,190
119,877¥

March 31, 2005
(In millions of
U. S. dollars)$

119,902612
120,514

$

1,106
11
1,117

5. Loans
All loans are loans on deeds. The amounts reported in the balance sheets as of March 31, 2005 and 2004 are as follows:
March 31, 2005
（In millionsof yen）

March 31, 2004
（In millionsof yen）¥
Bankrupt loans
Non-accrual loans
Past due loans (3 months or more)
Restructured loans¥¥
122,764
724,275
847,039¥

March 31, 2005
(In millions of
U. S. dollars)$

51,58454,245
730,673
836,504

$

1,143
6,744
7,887

(a)

"Bankrupt loans" refer to loans, after write-off, on which accrued interest income is not recognized as there issubstantial doubt about the ultimate collectability of either principal or interest because they are past due for aconsiderable period of time or for other reasons, and to borrowers who fall into the following categories:- who have begun bankruptcy, settlement, reorganization, winding-up or special liquidation proceedings under the
Bankruptcy Law, the Corporate Reorganization Law, the Civil Rehabilitation Law, the Commercial Code or othersimilar laws of Japan- who have had their transactions with the promissory note clearinghouse suspended- who have begun similar proceedings under any foreign law.

(b)"Non-accrual loans" are loans on which accrued interest income is not recognized, excluding loans on which interest
payments are deferred in order to support the borrowers’ recovery from financial difficulties.

(c)"Past due loans (3 month or more)" are loans whose principal or interest payment is past due for over three months,
and which do not fall under the category of "Bankrupt loans" and "Non- accrual loans"(d)"Restructured loans" are loans whose repayment terms and conditions have been amended in favor of the borrowers(e.g. reduction of or exemption from the stated interest rate, the deferral of interest payments, the extension ofprincipal repayments or renunciation of claims) in order to support the borrowers’ recovery from financial
difficulties, and which do not fall under the category of "Bankrupt loans," "Non-accrual loans," and "Past due loans(over 3 month)."(e)

The amounts of Loans indicated in the table above are shown gross prior to deduction of allowance for possible loan
losses.

(f)

In the event that a debtor country encounters temporary payment difficulties and requests debt rescheduling withrespect to external public debt (whose creditors are Sovereigns, Trade Insurance Institutions and Export Credit
Institutions, etc.) due to an unfavorable balance of international payment, meetings of creditor countries (the "Paris
Club") would be held to discuss debt relief measures (rescheduling). When creditor countries agree on debt relief
measures, debt-rescheduling agreements between the creditors and a debtor are agreed. Under such temporary
liquidity assistance, the debtor carries out Economic Restructuring Program that was agreed with the International
Monetary Fund ("IMF") and continues to make repayments of the debt. The principal amount of loans for which
JBIC has agreed to provide debt relief pursuant to the Paris Club agreements is as follows:
March 31, 2005
（In millionsof yen）¥
Overseas Economic Cooperation AccountMarch 31, 2004
（In millionsof yen）¥

1,282,521

March 31, 2005
(In millions of
U. S. dollars)$

1,251,786

11,943

In terms of repayment probability of the loans rescheduled in the Paris Club, their nature as public debt, unlike
loans provided by private financial institutions, provides an asset securing mechanism under such an internationalframework. Nonetheless, in order to facilitate comparison with pricate financial institutions, JBIC classifies thoseloans to borrowers classified under the assessment as "Watchlisted" (but not "Past due loans (3 months or more)"),that were rescheduled under the Paris Club as "Restructured loans." The amount of such loans, included in"Restructured loans" in the above table, is ¥724,275 million ($6,744 million) of which ¥570,270 million ($5,310
million) represents original principal attributable to the Overseas Economic Cooperation Account for the fiscal year
ended March 31, 2005,and ¥730,673 million of which ¥565,183 million represents original principal attributable to
the Overseas Economic Cooperation Account for the fiscal year ended March 31, 2004,respectively(g)Upon special request, major creditor countries, including Japan, agreed at the Paris Club to offer grace period("Moratorium") for countries affected by the Sumatra Earthquake and India Tsunami in December 2004, in order tosupport their reconstruction and recovery. During this Moratorium period creditor countries will not expect any debt
payment on the due date up to December 31, 2005, and will reschedule the repayment period of deferred debts for 5
years including a 1 year grace period. Affected countries requesting the Moratorium are currently considering
whether to accept this condition or not.
As at the end of March 2005, of the affected countries, Indonesia and Sri Lanka had requested the Paris Club fora moratorium. However, since they are still considering whether to accept the conditions of the moratorium offeredby the Paris Club, the amount of their deferred debts has yet to be determined.Of JBIC’s total loans to overseas
sovereign debtors, those to affected countries who requested Moratorium are ¥2,571,276 million ($23,943 million) in
the Overseas Economic Cooperation Account.
Loans related to this Moratorium are not included in the loans described in (a) to (d) above, since lending terms
has been modified based on an international agreement under this Moratorium to offer a grace period in order tosupport reconstruction and recovery of affected countries, and is therefore irrelevant to their debt-repayment ability.

(h)

As JBIC's debtors mainly require long-term loans, JBIC generally enters into commitment line contracts with these
debtors. JBIC provides commitment lines under which it lends necessary funds up to a predetermined amount,which is within the borrowers’ financing needs for the projects and up to the agreed maximum to lend, uponborrowers’ request, provided that the request meets terms and conditions for disbursement prescribed in the Loan
Agreement. The total balance of unused commitment lines as of March 31, 2005 and 2004 are ¥4,001,500 million($37,261 million) and ¥4,040,961 million, respectively.

(i)With respect to claims with collateral or guarantees on debtors who are legally or substantially bankrupt("Bankrupt borrowers and Substantially bankrupt borrowers"), the residual booked amount of the claims after
deduction of the amount which is deemed collectible through the disposal of collateral or the execution of guarantees
in written-off against the respective claims. There were no corresponding amounts as of March 31, 2005 and 2004.

6. Miscellaneous assets
Miscellaneous assets as of March 31, 2005 and 2004 are as follows:
March 31, 2005
（In millionsof yen）¥
Prepaid expenses
Accrued income (a)Others (b)¥March 31, 2004
（In millionsof yen）¥

400
74,593
1,637
76,631¥March 31, 2005
(In millions of
U. S. dollars)$

446
79,8071,549
81,802

$

4
695
15
714

(Notes)(a)"Accrued income" includes ¥74,097 million ($690 million) of accrued interest on loans and others as of March 31,
2005, and ¥79,489 million of accrued interest on loans as of March 31, 2004.
(b)"Others" includes ¥1,185 million ($11 million) of suspense payments and others as of March 31, 2005, and ¥641
million of suspense payments and others as of March 31, 2004.

7. Premises and equipment
Premises and equipment as of March 31, 2005 and 2004 are as follows:
March 31, 2005
（In millionsof yen）

March 31, 2004
（In millionsof yen）¥
Tangible fixed assets
Land
Buildings
Equipment
Construction in progress
Total
Less-accumulated depreciation
Net book value

Intangible fixed assets
Software
Guarantee deposit
OthersTotal
Less-accumulated depreciation
Net book value

¥
¥

¥
2,994
7,221
1,250
108
11,576
4,890
6,686

¥

¥
¥

$
3,019
7,220
1,257
82
11,580
4,611
6,968

¥
¥

¥
552
316
0
868
327
540

March 31, 2005
(In millions of
U. S. dollars)

$
$

28
67
12
1
108
46
62

$
427
328
0
755
228
527

¥
¥

5
3
0
8
3
5

$
$

8. Deferred charges on bonds and notes
Deferred charges on bonds and notes as of March 31, 2005 and 2004 are as follows:
March 31, 2005
（In millionsof yen）

March 31, 2004
（In millionsof yen）¥
Deferred discounts on bonds and notes
Total

¥
8
8

¥

March 31, 2005
(In millions of
U. S. dollars)
$

12
12

¥

0
0

$

9. Allowance for possible loan losses
Allowance for possible loan losses as of March 31, 2005 and 2004 are as follows:
March 31, 2005
（In millionsof yen）

March 31, 2004
（In millionsof yen）¥¥
87,57094,940-General allowance for possible loan losses
Specific allowance for possible loan losses
Allowance for possible losses on specificoverseas loans¥

182,511

March 31, 2005
(In millions of
U. S. dollars)$

79,884
49,672¥

129,557

816
884
$

1,700

10. Bonds and notes
Bonds and notes as of March 31, 2005 and 2004 are as follows:

Description ofbonds and notes

Date ofissuance

Overseas
Economic
Cooperation Fund
Bonds guaranteedby Japanese govt.
8,9

December
1995November
1996

Currency
and amounts
March 31, 2005
(In millions)
JPY

Interest rate(%)

Maturitydate

2.93.0December
2005November
2006

25,000March 31,
2005
（In millionsof yen）¥
25,000March 31,
2004
（In millionsof yen）¥
25,000March 31,
2005
(In millions of
U. S. dollars)
$
233

¥

¥

$

25,00025,000

Scheduled redemptions of bonds and notes for each of the next five years as of March 31, 2005 are as follows:
In millions of yen

In millions of U.S. dollars¥$

Fiscal year 2005
2006
2007
2008
2009

15,00010,000-140
93-

11. Borrowings
Borrowings as of March 31, 2005 and 2004 are as follows:
Averageinterestrate

Due date of
repayment

Long-term borrowings
Borrowings from theGovernment Fund for Fiscal
Investment and Loan Program

2.24

Borrowings from theGovernment Post Office Life
Insurance Fund

2.07

March 31, 2005
（In millionsof yen）¥

March 31, 2004
（In millionsof yen）¥

March 31, 2005
(In millions of
U. S. dollars)$

4,140,383

4,283,887

38,55560,07682,020559

September 2005December 2019¥

4,200,459¥

4,365,907

Long-term borrowings with maturities for the next five years as of March 31, 2005 are as follows:
In millions of yen¥
Fiscal year 2005
2006
2007
2008
2009

In millions of U.S. dollars$

524,038
500,113467,095
450,403409,870

4,880
4,657
4,350
4,194
3,817

$

39,114233

12. Miscellaneous liabilities
Miscellaneous liabilities as of March 31, 2005 and 2004 are as follows:
March 31, 2005
（In millionsof yen）¥
Accrued expenses (a)Others (b)March 31, 2004
（In millionsof yen）¥

March 31, 2005
(In millions of
U. S. dollars)$

16,711651
17,363

17,6972,650
20,347

156
6
162

¥
¥
$
(Notes)(a)"Accrued expenses" includes ¥16,345 million ($152 million) of accrued interest on borrowings and ¥22 million ($0million) of accrued interest on bonds and notes and others as of March 31, 2005, (March 31, 2004: ¥17,176 millionand ¥22 million respectively).
(b)"Others" includes ¥651 million ($6 million) of suspense receipts and others as of March 31, 2005, (March 31, 2004:¥2,650 million).

13. Employee retirement benefits
JBIC has a defined benefits pension plan comprising a welfare pension fund plan and lump-sum severance indemnity
plan.
(a)

The funded status of the pension plans

Disposition

Projected benefit obligation
Fair value of plans assets
Unfunded pension obligation
Unrecognized net obligation at transition
Unrecognized net actuarial gains/losses
Unrecognized prior service cost
Net amount recognized on the balance sheet(A)(B)(C) = (A) + (B)
(D)
(E)
(F)

Prepaid pension cost
Allowance for employee retirement benefits(H)(G) – (H)

(Note)(b)(G) = (C) + (D)+ (E) + (F)March 31, 2005
（In millionsof yen）¥(8,719)2,154(6,565)(6,565)¥(6,565)

March 31, 2004
（In millionsof yen）¥(8,622)
1,999(6,623)(6,623)¥(6,623)

March 31, 2005
(In millions of
U. S. dollars)
$
(81)
20
(61)
(61)

$

(61)

The projected benefit obligation above includes a portion in which the pension fund acts for the government
welfare program.

Component of pension cost

Disposition

Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Amortization of net actuarial gains/losses
Amortization of net obligation at transition
Other Costs
Net pension cost

March 31, 2005
（In millionsof yen）
¥
364
171
(29)
22
¥
528

March 31, 2004
（In millionsof yen）
¥
355
168
(24)
(237)
¥
261

March 31, 2005
(In millions of
U. S. dollars)
$
3
2
(0)
0
$
5

(c)

Principal assumptions madeMarch 31, 2005

Discount rate
Expected rate of return on plan assets

March 31, 2004
2.0%
1.5%

2.0%
1.5%

Method of attributing the projected benefits toperiods of services
Amortization period of prior service costs

Straight-line basis--

Amortization period of actuarial gains/losses

Gains/losses are charged
to net income for the year

Gains/losses are charged
to net income for the year--

Amortization period of net obligation at transition

Straight-line basis

14. Assets pledged as collateral
There were no assets pledged as collateral as of March 31, 2005 and 2004.

15. Grant from general accountIn accordance with the "Changes of the Debt Relief Method" announced by the Japanese government on December 10,
2002, JBIC reported an extraordinary loss ("ODA-loan related losses") in the previous fiscal year. Under the policy tomaintain the financial soundness of JBIC, the government provided JBIC with a grant totaling ¥30 billion ($279 million)
corresponding to "ODA-loan related losses" out of its general account for the fiscal year ended March 31,2005 and 2004,
respectively.

16. Equity
Pursuant to Article 44 of the JBIC Law, the reserve attributable to the Overseas Economic Cooperation Account isprovided from or reversed to net earnings on the Overseas Economic Cooperation Account.
Losses carried forward to the following fiscal year are simply the sum of "Accumulated deficit at the fiscal year end"and statutory appropriation of net earnings as stipulated by the related law of JBIC. The deficit, which represents theshortfall of net assets to capital attributable to the Overseas Economic Cooperation Account as of March 31, 2005 and2004, are ¥315,270 million ($2,936 million) and ¥429,350 million, respectively.

17. Lease transactions
Lease transactions in the fiscal year ended March 31, 2005 and 2004 are as follows:(a)Finance lease transactions, excluding leases that ownership of the property are deemed to be transferred to thelessee:・Acquisition cost, accumulated depreciation and net balance of leased of leased property as of March 31, 2005 and2004 are as follows:
March 31, 2005
（In millions ofyen）

Acquisition cost
Equipment
Others
Total
Accumulated depreciation
Equipment
OthersTotal
Net balance
Equipment
OthersTotal

March 31, 2004
（In millions ofyen）March 31, 2005
（In millions of
U.S. dollars）

¥

¥

$

¥

239
192
431 ¥

122
192
314 $

2
2
4

¥

57
57
115 ¥

14
19
33 $

0
1
1

¥

181
134
316 ¥

107
173
280 $

2
1
3

・Future lease payment obligations as of March 31, 2005 and 2004 are summarized below:
March 31, 2005
（In millions ofyen）¥
Due within 1 year
Due after 1 year
Total

March 31, 2004
（In millions of
yen）

¥
101
218
320 ¥

¥

March 31, 2005
（In millions of
U.S. dollars）

$
61
220
282 $

1
2
3

・Lease payment, depreciation expenses and interest expense for the fiscal year ended March 31, 2005 and 2004 are as
follows:
March 31, 2005
（In millions ofyen）¥March 31, 2004
（In millions ofyen）March 31, 2005
（In millions of
U.S. dollars）¥

Lease payment
Depreciation expense
Interest expense

$

87
83
6

36
34
2

1
1
0

・Depreciation expense is calculated using the straight-line method over the useful economic life of the respective
leased assets with zero residual value.
・The difference between total lease payments and the acquisition cost of leased assets is debited to interest expenses,
and is allocated to each fiscal year using the interest method.
(b)

Operating lease transactions:・Future lease payment obligations as of March 31, 2005 and 2004 are summarized below:
March 31, 2005
（In millions ofyen）¥

Due within 1 year
Due after 1 year
Total

¥

March 31, 2004
(In millions of
yen)
¥
1
1
2 ¥

18. Derivative transactions
There were no derivative transactions in the fiscal year ended March 31, 2005 and 2004.

19. Market value of securities
Notes to market value of securities as March 31, 2005 are as follows:(a)

Trading securities
Not applicable(b)

Held-to-maturity debt securities
Not applicable(c)

Available-for-sale securities with market value
Not applicable(d)

Held-to-maturity debt securities soldNot applicable(e)

Available-for-sale securities soldNot applicable

March 31, 2005
（In millions of
U.S. dollars）
$
0
0 $

0
0
0

(f)

Held-to maturity debt securities and available-for-sale securities whose market value is not readily determinable
are as follows:
March 31, 2005

March 31, 2005
（In millions of
U.S. dollars)（In millions of yen）¥
Held-to-maturity debt securities
Unlisted foreign securities
Available-for-sale securities
Unlisted Japanese equities other than over-the-counter
Unlisted foreign equities
Other Japanese securities
Other unlisted foreign securities
Total$
115,879
2,807
1,190
119,877 $¥(g)

Change in classification of securities
Not applicable(h)

Redemption schedule of available-for-sale securities with maturity
Not applicable(i)

Money held in trust
Not applicable(j)

Net unrealized gain (loss) on available-for-sale securities
Not applicable

1,079
27
11
1,117

Notes to market value of securities as March 31, 2004 are as follows:(a)

Trading securities
Not applicable(b)

Held-to-maturity debt securities
Not applicable(c)

Available-for-sale securities with market value
Not applicable(d)

Held-to-maturity debt securities soldNot applicable(e)

Available-for-sale securities soldNot applicable(f)

Held-to maturity debt securities and available-for-sale securities whose market value is not readily determinable
are as follows:
March 31, 2004
（In millions of yen）¥

Held-to-maturity debt securities
Unlisted foreign securities
Available-for-sale securities
Unlisted Japanese equities other than over-the-counter
Unlisted foreign equities
Unlisted Japanese local government bonds
Unlisted Japanese corporate bonds
Unlisted foreign bonds
Other Japanese securities
Other unlisted foreign securities
Total

-

¥

117,1102,791
612
120,514

(g)Change in classification of securities
Not applicable(h)

Redemption schedule of available-for-sale securities with maturity
Not applicable(i)

Money held in trust
Not applicable(j)

Net unrealized gain (loss) on available-for-sale securities
Not applicable